KKR in battle with Bain Capital over $4bn takeover of Fuji Soft

Jan 8, 2025 | News | 0 comments

KKR pushes Fuji Soft to file lawsuits against Bain Capital, alleging violations of a non-disclosure agreement.

According to a letter sent to Fuji Soft’s board on Monday, the US private equity firm is urging Fuji Soft to seek an injunction in order to stop Bain Capital’s alleged violation of an NDA, in light of a public battle between the two PE giants over the acquisition of the $4bn Japanese software company.

Bain Capital confirmed on Tuesday that it destroyed the confidential information obtained during the due diligence process, but would continue with the (now hostile) bid for Fuji Soft.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Sign up

In August, KKR made an offer of nearly $4bn for the business, but Bain’s subsequent attempts to outbid them have escalated tensions, breaking new ground in a market unaccustomed to public takeover battles between private equity firms. The situation peaked in December when Bain surprised the market with a $4.3bn counteroffer and announced its readiness to proceed without the support of Fuji Soft’s board—a bold and uncommon move in Japan. 

Fuji Soft’s board has backed KKR’s lower bid and insisted that Bain destroy the confidential information it gathered during due diligence. However, Bain argued that there is no valid reason for its higher offer to be rejected. Bain has accused Fuji Soft of ignoring shareholder interests and stated its intention to continue using the information to proceed with its tender offer. Meanwhile, Fuji Soft’s founding family has expressed its support for Bain’s bid.

The industry ministry’s new takeover guidelines, designed to promote corporate acquisitions, have started to eliminate the stigma associated with unsolicited bids and have encouraged lenders to support such proposals.

Source: Reuters & KKR Press Release

Can’t stop reading? Read more